A firm is considering the opportunity to buy one$$s of its competitors. This firm has no debt, and the financing will be $100\%$ by debt issuance. If successful, this transaction will result for the combined entity in an increase in the business risk. From the perspective of the shareholders of the acquirer is it a negative development because:

A$.$ It will drive the acquisition price of the target higher

B$.$ Everything else equal it should decrease the WACC of the combined entity, hence increasing the value of the shares of the acquirer.

C$.$ Everything else equal, it should increase the WACC of the combined entity, hence reducing the value of the shares of the acquirer

D$.$ Everything else equal, it should decrease the WACC of the combined entity, hence reducing the value of the shares of the acquirer